Bank Reconciliation Statement Test

Result

Bank Reconciliation Statement Test - 17

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

Credit balance as per bank a/c implies_______.

A
Cash balance

B
Overdraft

C
Excess of expenditure

D
None of these

Solution

The bank account maintained by the account holder in his books of accounts is usually an asset for him as balance shown in the bank account would be a receivable for him from the bank and hence usually shows a debit balance.
But whenever a reverse situation happens, such that the bank account becomes a liability for him and he has to pay the bank then, his bank account would reflect a credit balance which in other words would become a bank overdraft.
Question 2
1 / -0

Bank reconciliation statement is prepared to reconcile ___________.

A
Difference in trial balance

B
The balance of personal A/c

C
Cash at bank as per cash book with balance as per bank statement

D
Balance in suspense A/c

Solution

Bank reconciliation statement is a statement which to prepared to reconcile the cash and bank balance.
Question 3
1 / -0

Which of the following accounts is increased by credit entries?

A
Bank overdraft

B
Purchase account

C
Goodwill account

D
Sales return account
Solution
- Purchase account has a debit balance being an expenditure and any credit entries would lead to decrease in the purchase amount.
- Goodwill account has a debit balance being an asset and any credit entries would lead to decrease int he goodwill amount.
- Sales return account has a debit balance as this account is used to record the items returned in sales. Sales has a credit balance so to reduce it, the sales return entries must be debited and hence sales return has debit balance. Any credit entries to the sales return account would lead to increase in the amount.
- Bank overdraft has a credit balance as it is a liability, any credit entries would lead to increase in the overdraft amount.
Question 4
1 / -0

Bank Reconciliation Statement is prepared to ascertain the causes of the difference between ________________ and ______________.

A
the balance as per the bank column of the cash book, the balance as per pass book

B
the balance as per the cash column of cash book, the balance as per the pass book

C
cash, bank column in the cash book

D
none of the above

Solution

Bank reconciliation statement is an exercise to ascertain the difference between the bank statements and cash book maintained by the business.
However, any discrepancies in cash column as per the cash book shall not be reflected since only bank column of the cash book is considered vis-a-vis the pass book in preparing Bank reconciliation statement.
Question 5
1 / -0

A Bank Reconciliation Statement is prepared by _________.

A
Creditors

B
Debtors

C
Business

D
Any of these

Solution

A bank reconciliation statement is generally prepared by the company accountant or book keeper to reconcile the closing balance of cash book (bank column) in own records as per the bank's records (pass book). Thus, it is prepared by the account holders or customers i.e business and not the bankers. It is normally prepared at the end of the month.
Question 6
1 / -0

A bank reconciliation statement is prepared with the balances of ________.

A
cash book

B
pass book

C
either cash book or pass book

D
both cash book and pass book

Solution

Bank Reconciliation statement is prepared in order to reconcile the balance as per the bank pass book and balance as per the cash account maintained by the business in the form of cash book after taking into consideration other aspects like cheques issued but not presented for payment, cash in transit, cheque in transit, etc.
Question 7
1 / -0

A bank reconciliation is a ____________________.

A
formal financial statement that lists all of the a firm's bank account balances.

B
merger of two banks that previously were competitors.

C
statement sent monthly by a bank to a depositor that lists all deposits, cheques paid and other credits and charges to the depositor's account for the month.

D
schedule that accounts for differences between a firm's cash balance as shown on bank statement and the balance shown in its personal ledger cash account.
Solution
Whenever money is deposited in bank or withdrawn from bank it is recorded in two places.
The passbook maintained by the bank
The cash book (bank column ) maintained by the account holder.
These two books are opposites of each other which means if one shows credit balance then the other would reflect a debit balance of the exact same amount.
But due to reasons like timing differences the balances of both these books do not match. Now, it is not practical and feasible for the bank to reconcile the account balances of each and every account holder so, the account holder prepares a bank reconciliation statement for his account maintained in the bank.
Question 8
1 / -0

The difference in the balances of the cash book and the pass book can be because of _______________.

A
error in recording the entries either in the cash book or pass book.

B
same entry recorded in either of the book earlier and in the other book later

C
debit balance of cash book is the credit balance of pass book.

D
both (a) and (b)

Solution

If an entry is recorded in either the cash book or the pass book first and not updated in either of them on a later date, it may lead to a difference between them both.
Also, if there is no consistency or an erroneous recording of transactions in recording entries in either of the books, it may lead to a difference between the two.
A debit position as per bank pass book means credit position as per cash book and vice versa.
Question 9
1 / -0

Unfavorable bank balance means ________________.

A
credit balance in the cash book

B
credit balance in the pass book

C
debit balance in the cash book

D
favorable balance in the cash book

Solution

The cash book is a account statement as maintained by the account holder. So if the cash book reflects a credit balance it means that the account is in the nature of a creditor/payable for the account holder and it would be the opposite for the bank.
The pass book is a copy of the account statement as maintained by the bank. So if the pass book reflects a debit balance it means that the account is in the nature of a debtor/receivable for the bank and it would be the opposite for the account holder.
So from the account holder's point of view he would be having a negative/unfavourable balance in his account in both the above situations whereas for the bank it would be the opposite.
Question 10
1 / -0

Favourable balance as per cash book means __________.

A
debit balance in the bank column of the cash book

B
debit balance in the pass book

C
credit balance in the bank column in the cash book

D
none of the above

Solution

Favourable balance as per cash book means normal balance of cash book which is debit balance.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Bank Reconciliation Statement Test - 17

Result

Bank Reconciliation Statement Test - 17

Score

-

Rank

-

SHARING IS CARING

Question 1

Cash balance

Overdraft

Excess of expenditure

None of these

Solution

Question 2

Difference in trial balance

The balance of personal A/c

Cash at bank as per cash book with balance as per bank statement

Balance in suspense A/c

Solution

Question 3

Bank overdraft

Purchase account

Goodwill account

Sales return account

Solution

Question 4

the balance as per the bank column of the cash book, the balance as per pass book

the balance as per the cash column of cash book, the balance as per the pass book

cash, bank column in the cash book

none of the above

Solution

Question 5

Creditors

Debtors

Business

Any of these

Solution

Question 6

cash book

pass book

either cash book or pass book

both cash book and pass book

Solution

Question 7

formal financial statement that lists all of the a firm's bank account balances.

merger of two banks that previously were competitors.

statement sent monthly by a bank to a depositor that lists all deposits, cheques paid and other credits and charges to the depositor's account for the month.

schedule that accounts for differences between a firm's cash balance as shown on bank statement and the balance shown in its personal ledger cash account.

Solution

Question 8

error in recording the entries either in the cash book or pass book.

same entry recorded in either of the book earlier and in the other book later

debit balance of cash book is the credit balance of pass book.

both (a) and (b)

Solution

Question 9

credit balance in the cash book

credit balance in the pass book

debit balance in the cash book

favorable balance in the cash book

Solution

Question 10

debit balance in the bank column of the cash book

debit balance in the pass book

credit balance in the bank column in the cash book

none of the above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.